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WorksheetsPBMF Ch 18-income and taxes
Total questions: 42
Worksheet time: 25mins
Martha's net income is $500, if her gross income is $850, how much are her deductions?
0
$350
$500
$1350
Which one is NOT a payroll deduction?
Health insurance
Sales tax
Payroll taxes
Federal income tax
Harry is paid $20/hour, he works 5 hours at normal rates plus another 3 hours at time and a half. how much does he get paid?
$160
$190
$220
$320
Giving up rewards in one area to receive better benefits in another area is a:
opportunity cost
trade-off.
short-term objective.
job duty.
A Wage is...
A set amount of money earned per month
An Hourly payment
A set amount of money earned each year
% of sales
What is the purpose of a W-4?
To track your tax history
To tell you how much you will earn each month.
To give information to your employer so that they will know how much to withhold from your paycheck for taxes
None of the above
_______ are small amounts of money given by customers to service related workers in return for good service.
Which term refers to expenses that occur regularly, at the same rate and are regularly paid?
net expenses
fixed expenses
variable expenses
gross expenses
What is the difference between a budgeted amount and an actual amount?
a deduction
a deficit
a surplus
a budget variance
Which term refers to expenses that change amounts each month ?
net expenses
fixed expenses
variable expenses
gross expenses
Groceries are considered a fixed expense.
True
False
All of the following are examples of earned income except
Wages
Commisions
Dividends
Net earnings from self-employment
A salesperson receives a base salary of $1,200 per month plus a commission of 6 percent on each sale. The following sales were made this month:
Sale 1 $6,500
Sale 2 $10,320
Sale 3 $700
Sale 4 $1,180
Sale 5 $29,000
Calculate this month’s total earnings.
2862
4062
28620
19820
The amount of federal income tax to withhold from your pay is based on
gross pay
marital status
the number of withholding allowances
all of the above are correct
Self-employed people
not eligible for Social Security
do not have to pay Social Security tax
do not have to earn work credits
must pay both employee's and the employers's share of the social security tax
What percent of your earnings goes to Medicare?
1.45%
.0145%
6.2%
.062%
What percent of your earnings goes to Social Security?
1.45%
.0145%
6.2%
.062%
The higher the number of allowances on your W-4, the
higher the amount of taxes that will be withheld
lower the amount of taxes that will be withheld
The amount withheld remains the same
Which of these is an example of unearned income?
interest
wage
salary
tips
In Texas, you must pay state taxes
True
False
When preparing a budget, the first thing you do is determine your budgeting period (week, month)
True
False
What type of information is NOT included on a W-2 form?
Employee's Personal Information
Federal and State Taxes Deducted
Wages
Employer's Social Security Number
What is the purpose of your W-2?
To tell the employer how much to withhold from your paycheck
To provide income and withholding information to the employee for the year
To send to the IRS for tax reporting each year
To report your retirement plan balance for the year
Your employer is required to send you your W-2 for the previous year by what date?
January 31
April 15
January 1
Your employer doesn't prepare a W-2, the employee does
Which TWO ARE the voluntary deductionS?
Insurance
Retirement
Income tax
Social Security
You are required to file a tax return if you make over $12,550 (for 2021). Why might you want to file a tax return even if you aren't required to?
To build your credit score
To get a refund of all the taxes that have been withheld during the year
You are not allowed to file a tax return if you make under $12,550 per year
So you can earn a credit on your taxes for the following year
